Clifford Chance

Virtual Currencies with Real Implications: FinCEN's First Enforcement Action against a Foreign-Located Money Services Business

31 July 2017

On July 26, 2017, the U.S. Department of Justice and the Treasury Department's Financial Crimes Enforcement Network assessed a $110,003,314 civil money penalty against BTC-e, a foreign Money Services Business, and a $12,000,000 penalty against Russian national Alexander Vinnik, an operator of BTC-e. BTC-e was fined for willfully violating United States anti-money laundering laws. This was FinCEN's first enforcement action against a foreign-based MSB, and its second action against a virtual currency operator.

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